Whole Foods Market Inc. (NASDAQ:WFMI) president and COO sold $1.8 million in stock, according to Barrons.com.
A.C. Gallo, who is Whole Foods’ president and COO, sold 48,984 shares for $1.8 million, or about $36.92 each. Gallo acquired the shares in May, 2010 as part of a grant of restricted stock, according to filings. The restriction on the stock expired on Aug. 14, 2010. The shares sold by Gallo 86% of his direct holdings in the company.
Another insider, however, made an opposite bet earlier this month. On Aug. 5, director William Tindell bought 8,000 shares for $291,000, or about $36.43 each.
“Gallo’s sale definitely raises concerns,” said Lon Juricic, president of StreetInsider.com. “It was the largest sale by a C-level executive in quite some time,” says Juricic. Whole Foods stock is up 34% this year.”
Insider selling of shares is often consider a negative because if a top executive is selling, it causes investors to wonder ‘what he knows’ that they don’t. In many cases, it is an innocent act related to the financial needs of the executive.